Advice on a more simplified investment strategy

[Prancing Llama]

My current strategy for the last few years, which I got from an investing book is as follows

Determine risk your willing to take...

I put 60% into stocks (Divided among 9 different sectors, healthcare, materials, etc. Mostly index funds focusing on each sector with a handful of long time dividend aristocrat stocks.)
Although in some sectors its only Index Funds.

15% into fixed income (Only CDs right now)

and 25% Real Estate (a few REITs and vanguard REIT Index fund held in my IRA)


This results in me rebalancing my IRA every 6 months or so because its so much number crunching to deal with all these funds and some individual stocks.

I am now investing more in a taxable account and trying to divide all this up every time I invest and I foresee this making me avoid investing. Is there a way to simplify this for my taxable account? I heard of people doing like VOO and some in VT total world markets and maybe a little in bonds.

What are your opinions on simplification and would you do something different since its a taxable account?

Thanks

[EvenSteven]

85% VT, 15% BND

Job done well, spend time on things you enjoy more than messing about with investments.

[Log]

85% VT, 15% BND

Job done well, spend time on things you enjoy more than messing about with investments.

Something like this. Could go even simpler, 100% in a target date fund and let Vanguard handle your stock/bond proportion for you over time.

VTI has a lower fee than VT, though at the marginally increased "risk" of less international exposure (knowing of course that many of these "US" stocks are international companies).

The point is, @Prancing Llama, you're doing a lot of work to diversify your stock holdings to the point of approximating a fully diversified index. Why? Vanguard has already done the work for you. You can get the same diversification or better with fewer clicks, less research, and less stress.

[ATtiny85]

I would look at going simpler overall. However, definitely in Taxable I would a hold single total stock index (VTSAX or the ETF). 100%. It’s low cost and tax efficient. Adjust any holdings in tax advantaged to make your overall portfolio match what you want.

In the tax advantaged accounts I would also dump all those sector funds and also go full on VTSAX and BND (though CDs are fine for now, but still take too much for me). Maybe add a little international at some point.

[Valley of Plenty]

My current portfolio allocation within my brokerage account is as follows:

VTI - 100%

I find it to be sufficiently simple

[Prancing Llama]

Sounds good ultra simple. I find it interesting that over the past year-ten years the S and P 500 index fund had higher highs and less severe lows than the options mentioned. What are your thoughts on that?

[ATtiny85]

My first thought is that I am investing for the next forty years not the last ten.

[Valley of Plenty]

Sounds good ultra simple. I find it interesting that over the past year-ten years the S and P 500 index fund had higher highs and less severe lows than the options mentioned. What are your thoughts on that?

My thoughts are that analyzing short term performance trends (including 10 years, which is still short term when compared to the 50+ year investing timeline I'm working with) isn't a good use of my time. I understand the principles of how and why long term total stock index investments work, which gives me the peace of mind to throw all my money into VTI and then not need to think about it again. If the S&P outperforms my portfolio by 1% over a 10 year period I'm not going to lose any sleep over it. I'm probably not even going to notice.

For what it's worth my company's 401k plan doesn't have VTI in it, so I instead have a mix of 70% S&P 500 and 30% VIEIX, which more/less mirrors the total stock market. I have automatic quarterly rebalancing set up for that.

[Prancing Llama]

Ok thanks for everyone's feedback. This is helpful. I'll get me some VTI